"Greg was very easy to work with. I had a complicated scenario that he was able to manage, with complete confidence. I would highly recommend using him."
"I've had a great experience working with Greg Monaco. He is incredibly detail-oriented and thorough, making sure everything is handled correctly and fully compliant. What really stood out to me is how proactive and dedicated he is."
"Monaco CPA is excellent to work with! Greg is detail-oriented, knowledgeable, and prompt. He's been instrumental in helping me get my business off the ground with a strong financial foundation."
"If you need a CPA or accountant in Livingston or Essex County, I highly recommend Greg at Monaco CPA. My wife and I switched because my old accountant often didn't return my calls. Greg is different."
"I've been working with Greg Monaco, CPA for a few years now, and he's honestly saved me real money with both personal tax help and crypto tax stuff."
"I've been working with Gregory Monaco CPA LLC for my taxes, and I couldn't be happier with the experience. Extremely professional, thorough, and organized from start to finish."
Testimonials reflect individual client experiences and do not guarantee similar outcomes. Tax savings and other results depend on each client's facts and are not typical of all engagements. No client was compensated for providing a review.
Free Tax Tool
Estimate your 2026 federal self-employment tax (Social Security + Medicare) and New Jersey Gross Income Tax based on your net self-employment income.
Enter your Schedule C net profit or partnership ordinary income subject to self-employment tax. Do NOT include S-corporation K-1 ordinary business income - it is not subject to SE tax. S-corp owner wages are subject to FICA through payroll, but K-1 pass-through distributions are not.
If you also have a salaried day job, enter Box 5 (Medicare wages). The Additional Medicare Tax threshold ($200,000 single, $250,000 MFJ) is applied to combined SE earnings + W-2 Medicare wages, and the Social Security wage base is reduced by W-2 wages already taxed.
| Net SE Income | Federal SE Tax | Deductible Half | NJ Income Tax (Est.) |
|---|---|---|---|
| $50,000 | $7,065 | $3,533 | ~$1,215 |
| $100,000 | $14,130 | $7,065 | ~$4,180 |
| $184,500 (SS cap) | $26,069 | $13,035 | ~$9,563 |
| $250,000+ | $29,851* | $14,926 | ~$13,735 |
*Above the $184,500 SS wage base, only Medicare (2.9%) and Additional Medicare (0.9% above $200K single / $250K MFJ / $125K MFS) apply. NJ income tax estimates are for a single filer with the basic NJ personal exemption and no other income. Actual amounts depend on deductions, filing status, and other income sources. Schedule a consultation for a precise calculation.
Self-employment tax (SE tax) is how self-employed individuals pay the Social Security and Medicare taxes that employees split with their employers. When you are an employee, your employer pays 7.65% and you pay 7.65%, for a total of 15.3%. When you are self-employed, you pay both halves yourself.
SE tax is calculated on 92.35% of your net self-employment income (the 7.65% reduction accounts for the employer-equivalent half of SE tax). For 2026:
To account for the employer-equivalent portion of SE tax, you can deduct 50% of your total SE tax from your gross income as an above-the-line deduction (reducing your AGI). This deduction appears on Schedule 1, Line 15.
The One Big Beautiful Bill Act (OBBBA), signed July 4, 2025, made the TCJA individual income tax rates permanent. The 37% top bracket, which was scheduled to revert to 39.6% in 2026, is now the permanent rate. This affects how SE income is taxed at the federal level since your net SE earnings flow through to your personal return at these rates.
Many self-employed individuals in NJ reduce their SE tax burden by electing S-Corp treatment. With an S-Corp, you pay yourself a reasonable W-2 salary (subject to FICA), and additional profits are distributed as S-Corp distributions, which are not subject to SE tax. For high-income earners, this can save thousands per year.
Curious how much you could save with an S-Corp?
Use the S-Corp Savings Calculator to compare your SE tax burden against what you would pay as an S-Corp, including NJ compliance costs.
Run another scenario before scheduling a consult.
Tax advice disclaimer: This material is for general educational information only and is not legal, tax, or accounting advice for your specific facts. A CPA-client relationship is formed only through a signed engagement letter.